MCB BANK 2011 Islamia Univeristy of Bahawalpur

An Internship Report
INTERNSHIP REPORT ON MCB BANK LIMITED

SUBMITTED TO:
Mr. NAZIK HUSSAIN

SUBMITTED BY:
SHAHZAD KHALID
ROLL # 40 MBA 4TH (MORNING) Session 2008-10
Department Of Management Sciences

The Islamia University of Bahawalpur
Department of Management Sciences
PREFACE
It is the requirement of the MBA course Islamia Univeristy , Bahawalpur that all students of MBA have to spend six or eight weeks in any organization to get practical experience and to get familiarized with the ways to live in the organizational environment which is dramatically different from the educational environment. That two months period called Internship Period , if spent properly and sincerely, enables the students to be more confident, more knowledgeable, more responsible and, above all, more committed to its work in the practical field. I have also been assigned to do internship of six weeks period in MCB Eid Gah Branch Bahawalpur. It has enabled me to understand the practical situation and sharpen our decision making power and utilizing the resources in an effective manner, so that our resources generate maximum profit. In preparing this report, I have put all of my best efforts and tried my level best to give maximum knowledge. Despite of my all the sound efforts, I do believe that there will always be a room for improvement in the efforts of learner like me.
Shahzad Khalid
DEDICATION
I dedicate whole of my education along with my life to my beloved parents and respected teachers, who were always kind to me. May God Bless Them (Aamin). Shahzad Khalid
ACKNOWLEDGEMENT
All praises to almighty Allah and our holy prophet Muhammad PBUH who gave me the courage and patience for completion of this final report. I wish to acknowledge my gratitude to my inspiring Teachers for their endless their persistence, support and encouragement, and for providing me a opportunity to work with Muslim Commercial Bank I am also very thankful to Muslim Commercial Bank Ltd. Eid Gah Branch, Bahawalpur and the Branch Manager who gave me opportunity to work with experienced persons in their organization. I am also thankful to my parents, family and friends that continually offered encouraging support
Shahzad Khalid
TABLE OF CONTENT
Sr.N o
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Executive summary Introduction Vision, Mission and Objective of MCB Strategies of MCB Corporate Information Organizational Structure MCB Branch Network Department Of MCB Eid Gah Branch General Banking Department Remittance Clearing Department Product and Services Financial Analysis Ratio Analysis SWOT Analysis Suggestion and Recommendation Conclusion Annexure
Particular
Pg.No
1 3 11 15 16 21 24 26 28 37 43 47 51 55 69 72 74
Executive Summary
Muslim Commercial Bank Limited has a solid foundation of over 50 years in Pakistan, with a network of over 1000 branches, over 850 of which are Automated Branches, over 350 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch. According to our internship program I completed my six-weeks internship at MCB Eid Gah Branch Bahawalpur. The head office of MCB is at karachi.MCB has the following department: o General Banking department o Clearing department o Accounts department o Foreign exchange department During my internship in MCB I worked in Remittances, clearing department and Customer Service Office department and I successfully completed all the task/duties that were assigned to me. This branch has no advances and foreign exchange department. General baking department is concerned with daily operation of the branch. This department is divided into four sections, which are cash section, clearing section, remittance section and fixed deposit section. Cash section performs cash related function like receipt of cash, payment of cash and collection of utility bills. Clearing section perform clearing of cheques for collection. Remittance section performs transferring of funds from one branch to another branch from one account to another. MCB offer five type of remittance which are telegraphic transfer (TT), mail transfer (MT), demand draft (DD), pay order (PO) and online remittance. During the course of internship I learned about different functions performed by Remittances, clearing and Customer Service Office department and bank as a whole. I also learned banks correspondence with their customers and within branches. I learned about documentation requirements and record keeping for different activities and processes, especially the
An Internship Report documentation requirement for the opening of account. Some of the work that I did in these departments included collecting cheques, filling account opening forms, pay in slip, online transfer, balancing ATM and stop withdrawal accounts of the customer. Although there were no such big problems found in the working of MCB, there were some problems in training of the employees, incentive schemes and product innovation. Some of the recommendations include workshops for employees, job rotation, teams work to find innovative products and scholarship programs for employees. Lastly MCB has seen a rapid growth in its activities by introducing a range of products and services and showing its presence in the country by opening new branches and in future should keep this momentum and always strive to become the best.
Background of the study
An Internship Report Internship training program during (MBA) Program is necessary for the initial fulfillment of the completion of Degree of Master in Business Administration (MBA). It is necessary for me to complete an internship report of about 6 weeks in some manufacturing or service industry relevant to my area of interest and specialization. So, as my area of specialization is finance, I choose the Banking Sector for internship.
Purpose:
The study has the following purposes.
(a) Use my knowledge and skills from the classroom, (c) Take steps to gain that competence under educational supervision, and (d) Become better familiar with the types of work settings in which such competence can be applied.
Scope:
This study will facilitate the students or the MBA regarding the working of banking sector of Pakistan because most of the teachers during their lectures use the examples of Banks like MCB, National Bank, UBL, Bank Alfalah and many others, students should study this report so that they must grip the functioning of such Banks.
Limitation of the study:

The study is done with the sole purpose of doing the best work but there were certain limitation faced during the internship period. The most important limitation from which the study suffers is the non-availability of information in a manner required for analysis and the secrecy of the bank.
Objective:
An Internship Report I worked as an internee in MCB Eid Gah branch, Bahawalpur. The main objectives to study in MCB were:
To get experience in working with well reputed organization. To gain knowledge about the professional environment of the bank. To know about the technology utilized in the banks. To deal and manage with the situation of stress. To enhance my skills
Methodology:
There are mainly two method used for collection of data.
Primary data:
Observation of functions of Branch operations on the spot. Observation of different processes of Branch on the spot. Observation of the employee darning work
Secondary data:
Internet is very helpful for me to study more about banking sector. Different type of booklets of the Bank. Annual reports
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Introduction of MCB
MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 368 billion and total assets of around Rs.500 billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974, MCB was nationalized along with all other private sector banks. The Bank has a customer base of approximately 4 million, a nationwide distribution network of over 1,000 branches and over 450 ATMs in the market. During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base. Over the years MCB has developed strong relationships with its customers by understanding their needs and treating them with respect, dignity and importance. The driving force behind its commitment and services is its focus on customers ensuring that it not only meets, but also exceeds their expectation. They strive to achieve excellence by ensuring that every moment of their time is spent in adding value, making sure that they do things right, first time, and every time. With the quest of quality MCB has always taken initiatives bringing banking into a new arena; from cash to the convenience of plastic; from branch banking to internet banking and from face to face customer interaction to online accessibility. MCB now focuses on three core businesses namely Corporate, Commercial and Consumer Banking. Corporate clientele includes public sector companies as well as large local and multinational concerns. MCB is also catering to the growing middle class by providing new asset and liability products. MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 63 years in Pakistan, the Bank provides 24 hour banking convenience with a network of over 1000 branches, the largest ATM network in Pakistan over 450 ATM locations in the market.
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ROLE OF SECTOR HISTORY OF BANKING IN PAKISTAN
Bank:
A Bank is a financial institution which deals with money and credit. OR A bank is a firm that takes deposit from household and firms and makes loans to household and firms. Banks plays an important role in the economy of any country. They are very important for the progress of any country. Banks borrows money at the lesser rate of interest and lends it to borrower at the higher rate of interest hence bank is profit oriented organization. Bank has to keep certain proportion of total deposits in order to meet cash requirement of individuals and business companies. At the time of independence, commercial banking facilities were provided quite well here. There were 487 offices of schedule banks in the territories now constituting Pakistan. An Expert committee was appointed. The committee recommended that the reserves bank of India should continue their function in Pakistan until 30 September. 1948, and Pakistan would take over the management of public debt and exchange control from reserve bank of India on April 1948 and that Indian notes would continue to be legal tender in Pakistan until 30 September 1948. Moreover the banks including those having their registered office in Pakistan transferred them to India in order to bring a collapse of a new state. By 30 June 1948 the number of the offices of scheduled banks in Pakistan declined from 487 to only 195.In order to make necessary arrangement for the assumption of control and expert committee was appointed to recommend necessary steps, including the required legislation to establish a central bank for Pakistan. The governor-general of Pakistan Quaid-i-Azam Muhammad Ali Jinnah inaugurated the State Bank of Pakistan order was promulgated on May 12, 1948. The first Pakistani notes were issued in
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An Internship Report October 1948 in the State Bank of Pakistan withdrew the reserves Bank of India notes of the value of Rs. 125.02 crores with the help the Pakistan notes. On 1st January, 1974 all Pakistani banks were nationalized through Nationalization Act 1974. Under this law all Pakistani Banks become a public property. All small banks were merged in bigger banks to create five major Pakistani banks. These banks were to control by Pakistani Banking Council. There are still controversies about this act of Govt. as whether it contributed in success of failure of banks. However the major changes after Nationalization were as follows: Working of banks was extended to under-developed areas. Market expansion for credit and deposits. Decrease in service level of bank officers. Decrease in profitability as well. In 1990 the govt. decided to denationalize all the nationalized institutions. Same was also suggested in banking sector. For this purpose, amendments were made to Nationalization Act 1974 and two nationalized banks were privatized. Along with this a permission to open banks in private sector was also granted. The rules regarding establishment of new banks and for incoming foreign banks were also relaxed. The two privatized banks are: MCB taken up by a private group in April, 1991 & ABL taken up by its own employees in September, 1991. After these changes a large number of private and foreign banks started their operation in Pakistan Now, Pakistan has a well-developed banking system, which consists of a wide variety of institutions ranging from a central bank to commercial banks and to specialized agencies to cater for special requirements of specific sectors. The country started without any worthwhile banking network in 1947 but witnessed phenomenal growth in the first two decades. By 1970, it had acquired a flourishing banking sector. Pakistan's banking sector has remained remarkably strong and resilient during the world financial crisis in 200809, a feature which has served to attract a substantial amount of FDI in the sector. Stress tests conducted on June 2008 data indicate that the large banks are relatively robust, with the medium and small-sized banks positioning themselves in niche markets. Department of Management Sciences 13
An Internship Report Banking sector turned profitable in 2002. Their profits continued to rise for the next five years and peaked to Rs 84.1 ($1.1 billion) billion in 2006. During the fiscal year of 2008-2009, total assets of all the scheduled banks increased by Rs 574.7 billion. Total assets grew by 6.4 percent from Rs 8861 billion in June 2008 to Rs 9436 billion in June 2009. During the fiscal year of 2008-09, there was also an increase of Rs 248 billion in the net advances of the scheduled banks. Net advances grew by 8.67 percent from Rs 2873 billion in June 2008 to Rs 3128 billion in June 2009.
Brief History of the MCB:

MCB Bank Limited formerly known as Muslim Commercial Bank Limited was incorporated by the Adamjee Group on July 9, 1947 in Kolkata in Bengal, under the Indian Companies Act, VII of 1913 as a limited company. But due to changing scenario of the region, the certificate of incorporation was issued on 17 August, 1948 with a delay of almost 1 year; the certificate was issued at Chittagong. The first Head office of the company was established at Dacca and Mr. G.M. Adamjee was appointed its first chairman. It was incorporated with an authorized capital of Rs. 15 million. The Bank transferred its registered/Head office from Dhaka to Karachi on August 23, 1956 through a special Resolution.
Nationalization:
In January 1974, the government of Pakistan nationalized MCB following the banks (Nationalization) Act 1974, subsequently, in June 1974, Premier Bank limited merged with MCB.
Privatization:
A wave of economic reforms swept Pakistan in the late 1990s introducing the need for privatization of state owned banks and companies in April 1991, MCB because Pakistans first privatized Bank, the government of Pakistan transferred the management of the Bank to Nishat Group group of leading industrialists of the country by selling 26% shares of the Bank. With a view to broaden equity holding the government sold 25% of the paid up capital to the general
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An Internship Report public. In terms of agreement between the government of Pakistan and the Nishat Group additional 24% shares have been purchased by the group making their holding 50%. As of June 2008, the Nishat Group owns a majority stake in the bank. 25% was retained by the government. Now it is fully privatized. Mian Mohammad Mansha is the Chairman of the group (and also MCB) and has played instrumental role in its success. In recognition of Mr. Manshas contribution, the Government of Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the country. MCB is Pakistans fourth largest bank by assets having an asset base of US$6.7 billion, and the largest by market capitalization having a market capitalization of US$4.1 billion. The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a population of 160 million.
Functions of MCB:
The bank performs all the commercial and business function to list client which are given as follow: Accepting the deposit through the help of various schemes like PLS Saving A/C, Term deposit A/C etc. Banks attract the idle fund of peoples at lower rate and lend them at higher rate.
Allow their trusted customer to overdraw their current account up to an agreed limit Provision of agencies services through the collection of cheques and dividends Bank transfer funds of customer from one branch to another branch.
Bank transfer foreign exchange business Make investment in other banking companies
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An Internship Report Provide short-term and long-term financing facilities to agriculturists and industrialists Provision of Hajj services to intending Hajjis Improve recovery of advances and minimize bad and doubtful debt
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Vision statement
To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.
Mission Statement
We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us. Providing innovative Efficient financial solutions Long-term relationships with our customers Shareholders invest with confidence
Objective of MCB:
Maximize the marker share Modernize the bank Export and import promotion Maximize the deposit Give attraction return to its shareholder
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An Internship Report Development of human resource Improvement in the quality of customer service Right size the organization
Our values:
Integrity
We are the trustees of public funds and serve our community with integrity. We believe in being the best at always doing the right thing. We deliver on our responsibilities and commitments to our customers as well as our colleagues.
Respect
We respect our customers values, beliefs, culture and history. We value the equality of gender and diversity of experience and education that our employees bring with them. We create an environment where each individual is enabled to succeed.
Excellence
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a performance driven, result oriented organization where merit is the only criterion for reward.
Customer Centricity
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An Internship Report Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and aspirations, both realized and unrealized. We make every effort to exceed customer expectations through superior services and solutions.
Innovation
We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives.
Award and achievement:

Best Bank in Asia Award 2008
MCB has been awarded as a Euromoney Award 2008 for the Best Bank in Asia".
Best Bank in Pakistan Award 2006

MCB has yet again received the esteemed Euromoney Award for the Best Bank in Pakistan. It is the only bank to receive the Euromoney Award for Excellence for the sixth time in the past seven years.
Best Bank in Pakistan Award 2005 Best Bank in Pakistan Award 2004 Best Bank in Pakistan Award 2003 Best Bank in Pakistan Award 2001
Best Domestic Bank Award 2000

MCB was awarded as a Euromoney Award 2000 for the Best Domestic Bank in Pakistan".
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Asia Money Awards The Best Domestic Commercial Bank Award 2005
MCB Continues to shine as once again Asia Money declares MCB as "The Best Domestic Commercial Bank in Pakistan" for the year 2005.
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STRATEGIES OF MCB
a) To make the organization learn so that it may be competitive. This is done through
closure of unproductive banks branches and offering golden handshake to surplus staff. b) Re-organization of the bank into commercial and corporate retorts so that more focused attention may be paid to the commercial and corporate customers. c) To promote online banking on an extensive sealer so that: Withdrawal, utility bills payments, deposit s may be made round the clock with one visit to the branch.
To promote RTC (Rupee Traveler Cheque) as a medium of exchange to facilitate the
business persons. To develop at least 1200 branches in the country, as a center of excellence for competing with the best of foreign banks. To promote teamwork, improve information systems.
To concentrate on development of human resources.
To transfer fund anywhere easy.
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CORPORATE PROFILE
Mian Mohammad Mansha Mr. S. M. Muneer Mr. Tariq Rafi Mr. Shahzad Saleem Mr. Sarmad Amin Dr. Muhammad Yaqub Chairman Vice Chairman Member Member Member Member 22
Mian Raza Mansha Dato' Mohammed Hussein Mr. Aftab Ahmad Khan Mr. Abdul Farid Bin Alias Mian Umer Mansha Mr. Muhammad Ali Zeb Mr. M.U.A. Usmani Chief Financial Officer Mr.Salman Zafar Siddiqi Principal Office
Member Member Member Member Member Member Acting President
MCB 15 Main Gulberg, Lahore Registrar's and Share Registration Office MCB 15 Main Gulberg, Lahore M/s. THK Associates (Pvt.) Limited State Life Building No.3, Dr. Ziauddin Ahmed Road, Karachi Audit Committee Mr. Tariq Rafi Dr. Muhammad Yaqub Dato' Mohammed Hussein Mr. Aftab Ahmad Khan Chairman Member Member Member
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An Internship Report Mr. Muhammad Ali Zeb Mr. Malik Abdul Waheed Member Member
Human Resources Committee Mian Mohammad Mansha Dr. Muhammad Yaqub Mian Raza Mansha Mr. Shahzad Saleemn Mr. M.U.A. Usmani Chairman Member Member Member Member
Risk Management & Portfolio Review Committee Mr. Shahzad Saleem Chairman Tariq Rafi Member Mansha Member Committee on Physical Planning, IT System & Contingency Arrangements Mr. Sarmad Amin Chairman Raza Mansha Member Mr. S. M. Muneer Member Mr. Tariq Rafi Member Mr. Sarmad Amin Member Mian Raza Mansha Member
Mr.
Mian Umer
Mian
Mr. Abdul Farid Bin Alias Member
Mr. M.U.A. Usmani Member
Business Strategy & Development Committee Mian Mohammad Mansha Chairman Member Hussein Member Mr. S. M. Muneer Member Mr. Shahzad Saleem Dato' Mohammad
Mian Raza Mansha Member
Dr. Muhammad Yaqub Member
Mian Umer Mansha Member
Mr. M.U.A. Usmani Member
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MANAGEMENT HIERARCHY
PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT
EXECUTIVE VICE PRESIDENT
SENIOR VICE PRESIDENT
VICE PRESIDENT
ASSISTANT VICE PRESIDENT
GRADE 1
GRADE 2
GRADE 3
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As MCB is a banking company listed in stock exchange therefore it follows all the legalities, which are imposed by concerned statutes. MR. Mian Mohammed Mansha is chairman & chief executive of the company with a team of 10 directors and 1 vice chairman to help in the business control and strategy making for the company. A team of 10 professionals is handling operational management of the bank. MR. Mian Mohammed Mansha also heads this team. The different operational departments are: Consumer Banking & IT Division Financial & Inter Branch Division Banking Operations Divisions HRD & Legal Division Financial Control & Audit Division Credit Management Division Commercial Banking Division Corporate Banking Division
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ORGANIZATIONAL STRUCTURE
Manager (AVP)
Operation Manger (OG | )
Advance s
PBA (OG |||)
Remittanc e
Current saving dep. (OG |||) Cash (Contract)
Forex (OG |||)
CSO (Contract)
Regional Operational Manager
Regional Manager
Internal control officer
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BRANCH NETWORK
MCB is in its over 50 years of operation. It has a network of over 1007 branches all over the country. The branch structure is as follows with respect to different angles.
MCB BRANCH NETWORKS

PROVINCE WISE Province Punjab Sindh N.W.F.P. Balochistan Azad J. Kashmir Domestic Total Overseas EPZ Grand Total Branches 665 248 106 37 18 1,074 6 1 1,081 Sub Brs. 7 1 8 8 Total 672 249 106 37 18 1,082 6 1 1,089
BRANCHES OF MCB IN BAHAWALPUR

Department of Management Sciences 29
An Internship Report There are 24 branches that are working in Bhawalpur region of MCB. Three branches of Multan are also working in Bahawalpur. Bahawalpur division consist of three District: Bahawalpur District Lodhran District Bahawalnagar District There are five Branches of MCB in Bahawalpur city which are MCB Model Town A Branch MCB Farid Gate Branch MCB Ghalla Mandi Branch MCB Eid Gah Branch MCB Satellite Town Branch
Organization Profile
Name of Organization: Chairman: Location: Branch code: Phone: UAN: Website:
MCB Limited. Main Mohammad Mansha Eid Gah Bahawalpur. 1136
+92-062-2885126 111-000-622 (MCB) www.mcb.com.pk 30
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DEPARTMENT OF MCB EID GAH BRANCH

The Branch provides various services to customer of bank. At this branch is composed of following department: General Banking Operation Department o Cash section o Remittance section o Current saving section Clearing department
There are the other following departments: Advances/Financing department Foreign Currency Department Accounts Department
DEPARTMENTS WHERE INTERNSHIP WAS CARRIED OUT

Operations Department Clearing Department Remittance Department
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OPERATIONS DEPARTMENT
In Operations department I was under supervision of Mr. Adnan, Operational manager. And I learnt to open accounts of different types and nature which are as follows,
TYPES OF ACCOUNTS
Single Joint Partnership Private Limited Public Limited
SINGLE:
Only one person can operate this a/c. An individual who can fulfill the requirement of bank can open this a/c. We can call it a personnel or individual a/c. The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form etc.
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JOINT:
In case of joint a/c applicant mentions that how much person will operate the a/c. Instruction are given for joint a/c such that the account shall be operated by anyone or more. The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Additional Signature Form (For Joint Account), Declaration regarding the operator of account.
PARTNERSHIP:
For partnership a/c, along with the application form other requirements needs satisfied. The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Registration certificate, agreement among partners and Commencement of business and private registration, resolution of board of directors, commencement of business, memorandum and articles of association and balance sheet etc.
PRIVATE LIMITED:
Such type of account is opened in the name of the businesses having private limited concern and mostly medium business enterprises open such kind of accounts. All the board of directors have to submit the declaration regarding the account operator on the company pad and with the rubber stamp with the signature of the all the members of the board of directors. In case of any change in directors bank must be informed regarding that. In case funds are borrowed by the company all the directors approval is necessary rather not only the authorized partner who can be the operator of the account.
PUBLIC LIMITED:
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An Internship Report Public Limited A/C type of account is opened in the name of the businesses having Public limited concern and mostly medium business enterprises open such kind of accounts. And terms regarding board of directors are the same as of private limited.
NATURE OF ACCOUNTS
Current Account PLS Saving bank A/C Khushali Bachat Account Saving 365 A/C Basic banking A/C
CURRENT ACCOUNT: In this type of accounts the client is allowed to deposit or withdraw money as and when he likes. He may, thus, deposits or withdraws money several times in a day if he likes. There is also no restriction of amount to be deposited or withdrawn. However, there is requirement of minimum balance maintenance of Rs. 1000/-. Usually this type of account is opened by the businessmen. No profit is paid by the bank and no service charges are deducted by the bank on current deposits account. These types of deposits are also exempt from compulsory deduction of Zakat.
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An Internship Report DOCUMENTATION: For opening of current account individual, sole-proprietorship, partnership and non-trading organization are required to fill opening form and specimen signature card. While joint stock companies are required to fill account opening form SF-2 and signature card SF-6.
INTIAL DEPOSIT: Minimum requirement for opening of current account is RS. 1000/- . initial deposit must be in cash. However cheques are only acceptable as part of initial deposit in the case of undoubted person.
FEATURE: no restriction on withdrawal no profit is paid no zakat is to be deducted on current account
PLS SAVING BANK A/C:

This account was started in 1980s after the issuing of banking ordinance in 1980 by Zia Government to develop Islamic banking in Pakistan. In this case customer would be responsible for bearing profit as well as loss. The bank would be within its rights to make investment of credit balances in the PLS saving accounts in any manner at its sole discretion and to make use of the fund to the best of its judgment in the banking business under the PLS system. FEATURES: Individual can open an account with a minimum initial deposit of RS. 10000. Profit is calculated on monthly basis. Profit is only calculated on deposit balance between 10000 and 30000.
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An Internship Report ELIGIBILITY: Only individual are eligible to open PLS account. Non-individual like proprietors, company, partnership and trading are not eligible.
KHUSHALI BACHAT ACCOUNT:

Khushali Bachat account can be opened by individual only in single and joint name can be operated by either or survivor.
DOCUMENTATION: The procedure for opening KB account is same as for PLS saving account. The person desiring to open this account is required to fill an application form. As in case of PLS saving accounts introduction is necessary. An application for KBA is required to clearly mention whether to operate account singly or jointly. After fulfilling all requirements account number is allotted and a cheque book is issued to new account holder. An particular of account are entered in a ledger and also in computer. FEATURE: This account has following feature: o Account holder is required to maintain a minimum balance of RS. 5000. o Profit is calculated on daily basis. o Payment of utility bills can be made through this account free of charge.
BASIC BANKING ACCOUNT:

It provides banking facility to low income people without the restriction to maintain minimum balance. FEATURE: This account is open with a balance of Rs. 1000.
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An Internship Report BBA is a rupee current account. There is no minimum balance requirement and hence no monthly account charges are applied. In case where balance in BBA remains zero for a continuous 6 month period account will be closed automatically. ELIGIBILITY: Low income people are eligible for opening BBA accounts.
ACCOUNT OPENING PROCEDURE

Following steps are involved in A/C opening,
ACCOUNT OPENING FORM:

Firstly the customer fills the account opening form and provides all the information as provided above. I experienced to fill this form.
INTRODUCTION:
An account is needed to be introduced. The introduction of a current account holder is accepted for the opening of an account. The introducer should be a branch customer or may be account holder of any branch of MCB; however signatures should be verified by the banker. In certain cases, introduction from bank other than bank MCB may be allowed. Personally known accounts may be introduced by the bank staff. Introduction from an account holder not personally coming to the bank should be verified by the bank.
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STAMPING:
Then it is stamped. Stamps like. BAL sign verified, Sign Admitted Stamp, Sign Verified stamps etc are affixed.
ACCOUNT NUMBER:
When all the procedures are completed then the final approval is taken from the branch manager. After obtaining approval, an account number is allotted to the customer and all the information is entered in to the computer and KYC is filled up. Then that account number is writing on the Cheque Book, Specimen Signature cards and account opening form.
KNOWING YOUR CUSTOMER:

After entering information KYC is filled up. It should be ensured that at the time of filling information in KYC, a customer should be physically present. After this all information is saved in system. I filled KYC form also.
APPROVAL:
This account is further approved by Manager Operations.
SEND FORM TO HEAD OFFICE:

After fulfilling all the requirements and verifying the forms from operation manager the account opening form is sent to Head Office Karachi and make request to issue the printed cheque book.
LETTER OF THANKS:
Subsequent to the opening of an account, letter of thanks should be sent under registered post or courier service to the customer and the introducer.
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ISSUANCE OF A CHEQUE BOOK:

After opening an a/c with the bank, the a/c holder can not immediately start operating his/ her account. The cheque book is issued, when a customer will submit a copy of letter of acknowledgement duly signed by him, in case of new account. And for subsequent issuance of cheque book He/she has to make a request once again in the name of bank for the issuance of cheque book and he should mention title of A/C, A/C number, sign it properly and mention the number of leaves requires.
CLOSING OF AN ACCOUNT
There is no. of reasons of closing an account. Some are listed below: If customer desires to close his account In case of death of one account holder. Bankruptcy of the account holder. If an account contain nil balance or not up to the requirement of rules. Before closing any account, bank send letter to the account hold for informing him that his account is going to be closed. There is need an approval from higher authority to close any account.
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REMITTANCE SECTION
Remittance is transfer of funds from one place to another or from one person to another. It is an important service provided by banks to customers as well as non-customers. Since it is not a free service it is a source of income for the bank. This department issues the RTC and cashes the RTC. This department is also responsible for making demand draft, mail transfer, and pay order as they are computerized in this branch. The remittance department is mainly concerned with this remittance of funds.
Types of Remittance
Remittance is classified into following four types Inward remittance, instruments received for payment Outward remittance, issuing instrument to the responding branch. Inland remittance, within same country. Foreign remittance, from one country to another country.
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Parties Involved In Remittance

Remitter Remittee Issuing Bank Paying Bank
Instruments Used In Remittance

Demand Draft (DD) Telegraphic Transfer (TT) Pay Order (PO) Call Deposit Receipt (CDR) Rupees Traveler Cheque (RTC)
Demand Draft:
DD is a written order given by the branch of the bank on behalf of the customer to other branch of the same bank to pay the certain amount to the customer.DD are issued for the particular place other than place of issuance. This mode of remittance is normally used for payment to outside the city beneficial.
Procedure to Prepare the (DD): First the entire draft voucher filled which contain the following information. Name of the parties involved
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An Internship Report Date Account to be sent Account number if the DD is crossed Credit voucher is filled in order to get excise tax duty, withholding tax and exchange commission. After authentication, DD is handed over to the party and the bank sends the advice to concerned branch. So that when a party presents a DD in the concerned branch, its payment will be made to the certain person, if the DD is to same bank branch. If the DD is to other banks branch then it should be cleared through the clearing.
Telegraphic Transfer (TT):

In telegraphic transfer funds are transferred through telephone or fax. This is a fast mode of transferring funds. This mode of remittance is used for all banks whether in same cities or in different cities.
Procedure: For sending the TT the manger applied the test. In the test he uses the coding techniques, write his code number which is allocated to him by the bank, branch code etc. so after conforming all the information, the concerned branch will make the payment to the person.
Parties involved:
Following parties are involved in T.T transaction Applicant Remitting or drawing branch Drawee branch
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An Internship Report Beneficiary or payee
Pay Order:
Pay order are mostly used within the city when a person wants to pay to any person who is within the same city and who prefer non cash payment. Parties involved: Following parties are involved in pay order transaction. 1. Purchaser 2. Issuing / purchasing branch 3. payee
Rupees Traveler Cheque (RTC):

RTC is the traveler cheque are acceptable at all branches of MCB, and they carry dozens o f benefits. Security is always being an important issue of concern. RTCs provide maximum security while carrying big amounts. Now the maximum requirement is RS. 10000/-. It is made for travelling purposes. It can be presented to any branch of MCB, at any city. Here no time limit is required.
Issuance of RTC: Customer wishing to purchase the RTC is required to fill a form where he mentioned his/her name, address, amount and denomination of RTC he/she wants to purchase. Total amount of payment including charges of income tax and commission is paid. If someone provide his tax number then tax is not deducted from that customer on purchasing the RTC. After depositing the amount the remittance officer made the RTC. He sign on the back of the RTC and also asks the customer to sign in the presence of that particular officer so that the sign should be verified.
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An Internship Report At the RTC there is two places where the customer has to sign, the first one is done at the time of purchasing RTC and the second one was done at the branch where he give the RTC for payment at the presence of officer. So this is a safest method of taking money to anywhere else.
Online Remittance:
It is the fastest mode of transferring the funds. online funds are transferred by using internet. But this facility can be availed if both drawing branch and Drawee branch are online. Charges: Rs. 118 whatever amount
Parties involved: Following parties are involved in online remittance. 1. Remittance applicant 2. Drawing branch 3. Drawee branch 4. Beneficiary or payee
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CLEARING SECTION
The word clearing has been derived from the word clear and is defined as, A system by which banks exchange cheques and other negotiable instruments drawn on each other within a specific area and thereby secure payment for their clients through the Clearing House at specified time in an efficient way.
Clearing House
It is a place where cheques are presented, collected from bank branch. It is one of the services provided by NIFT to other commercial banks. NIFT acts as a clearing house.
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NIFT:
NIFT stands for National Institutional Facilitation Technologies. Clearing House of SBP has shifted a tiresome part of its work to a private institution named NIFT. NIFT collects cheques, demand drafts, Pay orders, Travelers Cheques, etc. from all the branches of different banks within city through its carriers and send them to the branches on which these are drawn for clearing. After the branches approve the instruments drawn on them, NIFT prepares a sheet for each branch showing the number for instruments and amount in its favor and drawn on it and sends it to each branch. A similar sheet for each bank is also sent to clearing house of SBP where accounts of banks are settled in the same manner.
Procedure: The cheques and draft come to the branch from different banks. They write them at on daily voucher record sheet and then separate different banks and write one bank slip at one schedule and then summary of banks and then balance with total drafts and total amount and giving them to representative. MCB is a member of SBP (NIFT) through whom branches forward / receive clearing cheaques along with a schedule conducts clearing. The clerk of forwarding branch prepares the schedule and voucher of all the clearing cheaque, which he received by the clerk on that day and sends these cheaques to checking officer. Checking officer pass these cheaques and vouchers by his intial, endorsement stamp and branch special crossing stamp. Clerk post the contra entries of these vouchers in the clearing register. Representative Banks collect these cheaques.
Functioning of Clearing House:

All the scheduled banks which are the member of clearing house, must maintain accounts with SBP, by debit and credit to which the clearing settlements are made. If on a particular day, a bank delivers Cheque and other negotiable instruments worth more than the total amount of Cheque received by it that banks account with State Bank of Pakistan will be credited with the
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An Internship Report differential amount. If on the other hand the total amount of Cheque and other negotiable instruments drawn on a certain bank by other banks is more than the total amount receivable by it from other banks, then this bank's account will be debited on that day. Outward clearing: The Cheque delivered to the other banks through NIFTs representatives for clearing are called outward clearing. Inward clearing: The Cheques received from the representatives of other banks for payment are called inward clearing.
How settlement is done in NIFT?

Presume that MCB got the Cheque, which are drawn on UNION BANK, UBL and ACBL for amounts Rs.50,000/-, Rs.30,000/-, Rs.15,000/- respectively, its total being Rs.95,000/-. It means that this amount is to be credited to MCB A/c with S.B.P. On the other hand the Cheques drawn on MCB are from UNION BANK, UBL & ACBL of Rs.15,000/- Rs.75,000/- and Rs.30,000/respectively, its total being Rs.1,20,000/-. It means that this amount is to be debited from MCB A/c. The difference between Rs. 95.000/- credit and Rs.120.000/- debit is Rs. 25,000/- debit, which means the house, is against MCB for Rs. 25,000/-. Hence MCB A/c with State Bank of Pakistan will be debited with Rs.25,000/- and the contra will be other banks accounts respectively. This is called as "Debit and Credit Rule".
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The largest network of over 750 online branches in the country and growing. Providing customers with 24/7 real time on-line transaction facilities.
The country largest network of over 450 ATMs. Get 24 hour convenience of cash withdrawal, mini statement, and bill payment and funds transfer services.
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Cash withdrawal facility at over 630,000 ATMs worldwide.
Cash management services for corporate customers. Helps customers substantially reduce their receivable collection time frame, improve cash flow and business management.
Call now for answer to your queries, banking services, ATM services, mobile banking services, RTC services, tele banking services and MCB product information.
Banking at your fingertips. Dial in anytime to get information regarding balance and mini statements.
A secure instrument of payment, offering CASH FREE convenience. It is the most powerful Debit and ATM Card providing 24-hour direct access to your bank account.
Islamic banking services through exclusive units / branches offering a range of liability and asset based Sharia compliant products like Musharika, Murabaha, Ijara and Istasana.
One of the most popular deposit accounts offered by MCB. Department of Management Sciences 54
Flexible and competitive home financing facility with options of home purchase, construction and renovation.
MCB Network for Electronic Transactions is an electronics hub for ATM sharing plus other touch points. The nation's largest operating switch with the highest transaction volume.
Personal loans for salaried individuals of reputed local and foreign companies at rates tailored to customer's repayment capacity.
The most widely accepted way to pay cash for travel related purposes. A safe and secure way to make payments nationwide
Car financing and leasing at competitive rates with flexible options. Car4u finances both semicommercial and non-commercial vehicles for personal and business use
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The best protection for your valuables. Lockers of different capacities are available nationwide.
Providing access to diversified financing options including working capital loans, term loans, trade finance services and investment banking.
MCB, the leader in banking technology, now provides the convenience of banking on the internet. You can now access your account anytime and anywhere.
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MCB Bank Ltd profit and loss account Rupee in (000) Items 2005 17,756,23 Mark up/interest Earned Markup/Interest Expense Net Markup/interest income Provision for diminution in the value of invest Prov. against loans and advances 2 2,781,468 14,974,76 4 -98,982 1,242,153 2006 25,778,06 1 4,525,359 21,252,70 2 121,197 1,014,540 2007 31,786,59 5 7,865,533 23,921,06 2 105,269 2,959,583 2008 40,043,82 4 11,560,74 0 28,483,08 4 2,683,994 1,335,127 57 2009 5161600 7 1584146 3 3577454 4 1484218 5796527
An Internship Report Bad debts written off directly Total NET MARKUP/INTERST INCOM AFTR PROV NON MARK-UP/INTEREST INCOME Fees commission and Brokerage Income Dividend income Income from dealing in foreign currencies Gain on sale of securities - net Unrealized gain on revaluation of invest Other Income Total Non Markup/Interest income Total Markup/Interest Earned NON MARKUP/INTERST EXPENSE Administrative Expenses Other provisions/written off-net Other charges Total Non Markup Interest Expenses Extra ordinary items Earnings After Non-Markup Expense Profit Before Taxation (-): Taxations: PROFIT /LOSS AFTER TAXATION Unappropriated profit brought forward Transfer from surplus on revaluation of fixed assets Total Profit available for appropriation 1,184 1,144,355 13,830,40 9 2448950 480344 531455 866112 1634 1,425,174 5753669 19,584,07 8 47,000 1,182,737 20,069,96 5 2,311,235 811,801 692,010 605865 0 570,505 4991416 25,061,38 1 199 3,065,051 20,856,01 1 2,634,610 632,300 693,408 1,500,865 -13,105 563,213 6,011,291 26,867,30 2 0 4,019,121 24,463,96 3 2,953,394 617,554 727,564 740,429 -103,198 855,697 5791440 30,255,40 3 41576 7,322,32 1 2845222 3 3331856 459741 341402 773768 0 736118 5642885 3409510 8 1010718 6,459,490 -72,740 178,841 6,565,591 0 13,018,48 7 13,018,48 7 4,096,072 8,922,415 502,388 83,749 586,137 9,508,552 6482592 11411 66708 6,560,711 18,500,67 0 18,500,67 0 6,358,272 12,142,39 8 4,990,260 32,166 5,022,426 17,164,82 4 5,022,416 -3,743 540,594 5,559,267 0 21,308,03 5 21,308,03 5 6,042,473 15,265,56 2 5,530,973 11,855 5,542,828 20,808,39 0 7,546,878 23,135 817,824 8,387,837 0 21,867,56 6 21,867,56 6 6,492,966 15,374,60 0 5,130,750 21,319 5,152,069 20,526,66 9 9 142824 690150 1094016 3 2315494 5 2315494 5 7659648 1549529 7 9193332 22324 9215656 2471095 3
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MCB BANK Ltd

Balance Sheet
AS ON.. Rupees in '000)
Assets:
Cash and balances with other treasury bank Balance with other Banks Lending to Fin. Institutions Investment - net Advances - net Operating Fixed Assets Deffered tax assets - net Other assets - net Total Assets
2005
23665549 1466045 9998828 69481487 180322753 8182454 191967 5471697
2006
32465976 6577017 21081800 63486316 198239155 9054156 172373 11031450
2007
39683883 3807519 1051372 11308926 1 218960598 16024123 0 17868761
2008
3963117 2
4043100
2009
38774871
6009993
3000000 167134465
4100079
96631874 26213547 0 17263733 0 19810476
253249407 18014896 0 23040095
298780780 342108243 410485517 443615904 509223727
Liabilities:
Bills Payable Borrowings from Fin. Institutions
Deposits and Other Accounts Sub-ordinated loan Liabilities against asset subto financial lease Deffered tax liablities Other Liabilities
8536674 27377502 229341890 1598080 0 0 8192338 275046484
7089679 23943476 257461838 1597440 0 0 11171496 301263929
10479058 39406831 292098066 479232 0 1180162 11722493 355365842
Total Liabilities
10551468 22663840 33018162 4 0 0 437137 21345781 385179850
8201090
44662088
367604711 0 0 3196743 15819082 439483714
Share Holders Equity

Share Capital Capital Reserve Unappropriate Profit & Reserves Total Equity of the Bank Surplus on Revaluation of Assets
4265327 9054940 4990260 18310527 5423769 23734296 298780780
5463276 24662426 5530973 35656675 5187639 40844314 342108243
6282768 34000638 5130750 45414156 9705519 55119675 410485517
6282768 36768765 9193332 52244865 6191189 58436054 443615904
6911045 38385760 15779127 61075932 8664081 69740013 509223727
Total Share Holders Equity total liability and share holder equity
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Ratio Analysis
1. Return on Assets
Years Net profit *100 Average asset % 2005 2.98627475 3 2006 3.78923575 4 2007 4.05678675 8 2008 3.60018134 2 2009 3.252445951
Interpertation:
It measures the overall effectiveness of management in generating profits with its available assets. The higher the Return on total assets better will be the performance. Since the computed value of ROA is showing an increasing trend in from FY 2005-2007. Then it tends to decrease in FY 2008 and 2009. The ROA of the firm is 3.25 % in 2009. It is less than the previous year. It shows that firm generates Rs.3.25 for each Rs.100 of the investment which is very poor for the company progress.
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. 2. Return on Equity
Years Net profit *100 Total equity % 2005 37.5929203 9 2006 29.7284904 8 2007 27.6953048 1 2008 26.3101269 6 2009 22.2186609
Interpertation:
Return on Equity measures the amount of net Income earned by utilizing each dollar of total common equity. Since the computed value of return on equity show decreasing trend from FY 2005-2009 due to increase in equity capital but the return is very low.
3. Earnings per Share

Department of Management Sciences 62
An Internship Report Years E.A for c/s holders No of sh. outstanding 2005 17.43 2006 23.4 2007 24.3 2008 22.25 2009 22.42
Interpertation:
This ratio indicates the amount of income earned by the common stockholders. Since the computed value of EPS is increasing from FY 2005-2007, due to increase in revenue as compared to expenses. In 2008 it is decrease due to increase in total expenses; however, in 2009 it is again increasing due to increase in revenue as compare to expenses. It show the progress of the company and it maintains this ratio more than Rs.20 which is good for the investors.
4. Advances to deposit Ratio

Years Advances % 2005 78.6261737 2006 76.9974907 2007 74.9613309 2008 79.3912958 2009 68.89177408
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An Internship Report *100 Deposits
Interpertation:
This ratio shows the ratio of advance to deposits which means that how much advances were made with respect to deposits. Since the computed value of advances to deposit ratio is showing decreasing trend from 20052007. However in 2008 it shows significant increase due to decrease in deposit. While it show significant decrease again in 2009.
5. Equity to deposits Ratio

Years 2005 2006 2007 2008 2009
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An Internship Report Total equity *100 Total Deposit %
10.3488708 5
15.8642206 2
18.8702635 9
17.6981545 2
18.97146879
Interpertation:
Since the computed value of equity to deposit ratio is showing an increasing trend from 20052007. However in 2008 it shows decrease while in 2009 it again increases.It is suggested that the bank should decrease its interest expenses on deposit by opening more currents accounts.
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6. Advance to Assets Ratio

Years Loans *100 Total Asset % 2005 60.3528623 9 2006 57.9463251 9 2007 53.3418571 3 2008 59.0906384 6 2009 49.73244442
Interpertation:
Since the computed value of advances to asset ratio is decrease from FY 2005-2007. However it shows significant increase in 2008. While in 2009 it shows again decrease due to increase in total asset.
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7. Equity to Assets Ratio

Years Equity *100 Assets % 2005 7.94371579 1 2006 11.9390031 8 2007 13.4279219 9 2008 13.1726688 5 2009 13.69535811
Interpertation:
This ratio expresses the amount of total investment in the assets that has been financed by shareholders. The equity to assets ratio indicates the finance and profitability of the bank it shows that proportion of total assets is financed by equity. Since the computed value of equity to deposit ratio is showing increasing trend from FY 20052007. However it show slightly decrease in 2008. While in 2009 it shows again increase.
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8. Debt-Ratio
Years Total liabilities *100 Total Assets % 2005 92.0562842 1 2006 88.0609968 2 2007 86.5720780 1 2008 86.8273311 5 2009 86.30464189
Interpertation:
Debt Ratio is calculated to check the outsiders claim on the business property.
Since the computed value of debt ratio show continuous decrease from FY 2005-2007.However in 2008 it shows increase. In 2009 it decreases again. Decrease in this ratio shows that the companies liabilities are decreasing as compared to the assets which is favorable for the bank.
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9. Investment to Total Assets Ratio

Years Investment *100 Total Assets % 2005 23.2550055 6 2006 18.5573768 8 2007 27.5501220 7 2008 21.7827794 6 2009 32.82142134
Interpertation:
Since the computed value of investment to deposit ratio is showing decreasing trend in FY 2006 and 2008. However in FY 2007 and 2009 it shows increasing trend due to increase in investment as compared to previous year.
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10. Deposit to total liability Ratio

Years Total Deposit *100 Total Assets % 2005 83.3829564 6 2006 85.4605590 7 2007 82.1964385 6 2008 85.7214166 3 2009 83.64467198
Interpertation:
Since the computed value of deposit ratio is showing increasing in FY2006 and 2008. However in FY 2007 and 2009 it is decreasing. It is therefore suggested that the bank should decrease its interest expenses on deposit by opening more currents account than saving accounts and giving more advances and maintain more reserve accounts.
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11. Return on deposit ratio:

Years net profit *100 % Total Deposit 3.89044278 2005 2006 4.71619331 8 2007 5.22617702 2008 4.65640692 3 2009 4.215206317
Interpertation:
This ratio shows how much return is earned in relation to the total deposits. Since the computed value of return on deposit ratio is showing increasing trend from FY 20052007. However from FY 2007-2009 it shows decreasing.
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12. Return on operating asset:

Years net profit *100 % operating asset 2005 26.7827404 2 2006 25.2455670 5 2007 25.6497140 9 2008 25.2299037 4 2009 24.6741341
Interpertation:
Operating assets = Operating fixed assets + Cash and balances with treasury banks + Balances with other banks Since the computed value of return on operating asset is showing decreasing trend in FY 2006. However it show increases in FY 2007. While it show a decreasing trend from FY 2007-2009.
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13. Total liability to total asset ratio:

Years total liability total asset *100 % 2005
92.05628421
2006
88.06099682
2007
86.57207801
2008
86.82733115
2009
86.30464189
T otal liabilityto total asset ratio

93 92 91 90 89 % 88 87 86 85 84 83 2005 2006 2007 Yea r 2008 2009
Total liability to total asset ratio
Interpretation:
Since the computed value of liability to assets Ratio is showing a decreasing trend from FY 2005-2009. The over all trend is decreasing. It is therefore suggested that the bank should decrease its interest expenses on deposit by opening more currents account than saving accounts.
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SWOT ANALYSIS
STRENGTHS:
MCB is the first Pakistani privatized bank and because of its quality management, marketing, innovation in products and services. Owing to all such factors they have established a good reputation in the banking market. Meeting the challenges of latest Technology by introducing Smart card remit express, mobile banking etc. Customer default rate is lower as compared to other bank
Investing huge amount on Human Resource development and training
MCB has the largest ATM network in the country The bank enjoys competitive profitability in the industry.
MCB captured majority of potential customer in Pakistan
Most of the mcb branches are computerized

MCB credit card are used all over the world as well as in Pakistan
MCB is largest private bank in Pakistan with more than 1000 branches, which cover almost every part of Pakistan MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTC etc.
WEAKNESSES:
The majority of people are not well aware about the products of MCB. Therefore it should advertise extensively especially RTC and Master Cards. Employees, dissatisfaction due to ill treatment and improper reward system. Favoritism and Nepotism in recruitment. High Employees Turnover. Less efficiency of SYMBOL System due to disconnectivity MCB Rupees travel check (RTC) is useable only in Pakistan Department of Management Sciences 75
An Internship Report Though ATM network is the largest in Pakistan, still some potential areas dont have the ATM. MCB has not greater number of branches in abroad
I observe that decision making process is very low.
OPPORTUNITIES:
Leasing sector is growing in Pakistan for the last two to three years which provides opportunity to MCB to go ahead in this area as well. Islamic Trading Based Banking can enhance the business of the bank.
To open more branches in the foreign country (overseas operations). It is a opportunity for MCB bank to Launch the more effective and modern banking
online system. Its a opportunity for MCB to financing small and medium cottage industry that will definitely increase advances and profitability.
THREATS:
For the last of many years, Pakistan is facing economic and political instability which is a big threat.
Other private commercial bank with sound profitability is also a threat to MCB e.g. UBL,
Alfalah, etc. Downsizing is also a threat for MCB employee as they feel insecure about their job Terrorism reduce the foreign investment so it is also a threat for the bank.
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SUGGESTION AND RECOMMENDATIONS
MCB Bank can improve its Marketing strategies to obtain more promotion and mass
media publicity of its products by the use of effective channels of promotions like TV, Newspaper Advertisements. It can also improve its magazine publication that it releases each month. Through better reward system MCB can reduce the problem of employee retention and improve employee motivation. ATM machine must be maintained properly to make it more convenient for the customers. To make the SYMBOL system more efficient and make sure its connectivity all the time in order to provides more convenience to customers. I have observe during working that there need of more staff due to pressure of work MCB should hire more employees for better performance even any employee when take leaves Manager has no choice to his work to other employee so this situation built high pressure.
By an employee job rotation is not accepted willingly and it decrease both performance
and satisfaction, it should be changed.

There should be market research and there should be more branches in the potential
areas. Quality of customer services is an important factor for provision of banking services, so MCB should improve its customer services by training its employee. Refresher courses for the staff are most important in any international organization. All the employees should have these courses according to their requirement. Foreign experts can also be called for this purpose.
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An Internship Report Bank should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank.
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CONCLUSION
With support of all branch members, I have been able to learn and experience many new things related to the banking sector and the banks workings. I am able to handle the public with respect to many different workings on many different instances and also in account opening for customers and can handle many other tasks as well. Finally I concluded that MCB is a good organization for a person for his long term career workings. Overall working and environment of the bank is very comfortable and the staff is very helpful and respectful of each other and it still maintains a professional environment. Employees of MCB Eid Gah branch work more than their working hours and all the workings take place in a very friendly atmosphere that does not bring pressure on the person working there. It also shows their loyalty and commitment to the organization. This branch of MCB relatively small and has climbed its way up very quickly and all that only because of the employees efforts and consideration for each other. Overall MCB promosing bank to provide its customer the best quality product .MCB concentrating on growth through investment technology and people , utilizing their extensive branch network amd developing a large and stable deposit base. MCB should continue with the same spirit to serve the pakistani citizen in the country and all over the world.
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An Internship Report The financial position of the bank is very strong as compare to nationalized banks and even of the private banks. The enviorment of MCB is very friendly enviorment, which is really impressive. The employees try to help each other in times when there is a lot of work on somebody elses hand and this is to be complemented. In 1991 the total deposit of MCB were 27.69 billion but now total deposit exceeds to 368 billion which show tremendous performance of MCB. This figure show the confidence of customer on the product and services of MCB. MCB know the particular needs of its diverse customers based and continuously develops product and services that fulfill their needs. MCB is pioneer in introducing RUPEE TRAVELLER CHEQUE to provide a safe way for purchasing and other business transaction to its customers. MCB has the largest network of automated teller machine which is giving the facility of 24 hour cash access service over the last few years. MCB has some objectives and to fulfill those objects MCB has some strategies there are the following objective of mcb: Maximize the marker share Modernize the bank Export and import promotion Maximize the deposit Give attraction return to its shareholder Development of human resource
Improvement in the quality of customer service Right size the organization MCB is working successfully in the banking sector of Pakistan. In recent year it is following the below mentioned strategies
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An Internship Report a) To make the organization learn so that it may be competitive. This is done through closure of unproductive banks branches and offering golden handshake to surplus staff. b) Re-organization of the bank into commercial and corporate retorts so that more focused attention may be paid to the commercial and corporate customers. c) To promote online banking on an extensive sealer so that: Withdrawal, utility bills payments, deposit s may be made round the clock with one visit to the branch. To promote RTC (Rupee Traveler Cheque) as a medium of exchange to facilitate the business persons. To develop at least 1200 branches in the country, as a center of excellence for competing with the best of foreign banks. To promote teamwork, improve information systems. To concentrate on development of human resources. To transfer fund anywhere easy. The principal functions of MCB are acceptance of deposits & financing, collection of Cheques, Locker, Collection of Dividends, Purchase and Sale of Securities & etc. MCB performs several functions and have many departments in order to retain and maintain their customers some of these departments are the general banking department, Advance department, Bill department, Clearing department , Remittance department etc. To motivate the employees MCB provide many allowances and facilities to its employees such as medical facility, huge amount of bonuses and also motivate the employees through promotions. The branch in which I have done my internship is providing the very satisfactory services to its customers and large numbers of customers are satisfied with the attitude and the sevices provided the branch. Understanding and the effective management of the human resources is the most difficult challenge faced not only by the bank but by all the organizations. Even though the people have been sacrificed in the new organizational developments, it is becoming clear that the true lasting
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An Internship Report competitive advantage comes through human resources and how they are managed. MCB seems to not focusing on this highly critical issue as the job satisfaction level of the employees working at MCB, was quite low. Main asset of the bank are the cash and cash equivalent, investments, advances. The liabilities are bills payable , Deposits and other accounts. Major sources of revenue of bank are the mark up/return/interest income/lease finance income and fee and commission income. Main difference between current and the saving deposit is the fact that: In current deposit the client is allowed to deposit or withdraw money as and when he likes because of their nature these deposits are treated as the current liabilities of the bank there is no profit on such deposits. In saving accounts which are called PLS-Saving accounts can be opened with an amount of Rs.10000 profit is paid on the profit accounts on half yearly basis and Zakat is deducted from such profit accounts. Remittance is a major function of the bank. It is the transfer of money from one place to another place. The need for remittance is commonly felt in commercial life and in everyday life generally by providing this service to the customer MCB earns a lot of income by charging service charges. Mode of Remittances that MCB uses is the following: Demand Draft (DD) Telegraphic Transfer (TT) Pay Order (PO) Call Deposit Receipt (CDR) Rupees Traveler Cheque (RTC) Clearing is the most important department of the bank in performing various function.
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An Internship Report Clearinghouse is an organization of the member banks working under NIFT which is for the purpose of setting inter banks claims resulting from transmission of funds from one bank to another. The clearing can be: Outward Inward
Ratio analysis show that in the previous two year shows an increase in all return (i.e. interest earned, interest income, Profit after taxation) which is a positive sign. But mostly expenses (i.e. interest expense, Provisions, Taxation) are also increase which show negative sign of business. The Bank should have to review its policies to decrease expenses. The past two years data shows that mostly financial ratios decrease which show negative sign of company. The Bank should have to review its policies to decrease expenses. It also shows that dividend ratios decrease which show negative sign of company. MCB is the first Pakistani privatized bank and because of its quality management, marketing, innovation in products and services. Owing to all such factors they have established a good reputation in the banking market. The weakness of the MCB is that the majority of people are not well aware about the products of MCB. Therefore it should advertise extensively especially RTC and Master Cards. There are the following suggestion and recommendation: MCB Bank can improve its Marketing strategies to obtain more promotion and mass media publicity by the use of effective channels of promotions like TV, Newspaper Advertisements. It can also improve its magazine publication that it releases each month. Better reward system is one of the most important requirements in order to reduce the problem of Employee retention and improve Employee motivation.
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An Internship Report ATM machine must be maintained properly to make it more convenient for the customers. To make the SYMBOL system more efficient and make sure its connectivity all the time in order to provides more convenience to customers. I have observe during working that there need of more staff due to pressure of work MCB should hire more employees for better performance even any employee when take leaves Manager has no choice to his work to other employee so this situation built high pressure.
By an employee job rotation is not accepted willingly and it decrease both performance
and satisfaction, it should be changed.

There should be market research and there should be more branches in the potential
areas. Quality of customer services is an important factor for provision of banking services, so MCB should improve its customer services by training its employee. Refresher courses for the staff are most important in any international organization. All the employees should have these courses according to their requirement. Foreign experts can also be called for this purpose. Bank should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank. In short we conclude that despite keen competition among banks operating in Pakistan and rapid changes in banking and economic scenario, both local and international, MCB made remarkable performance in every sphere of its activity. MCB is destined to go places given time and more through planning. In general and in short MCB is destined to go places given time and more through planning. I would say that MCB has shown a remarkable progress and I can say without any confusion that MCB is preferred provider of quality financial services with responsibility and profitability and to be best place to work.
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An Internship Report In the end my congratulations and thanks to all in MCB Eid Gah Branch for their cooperation.
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MCB BANK 2011 Islamia Univeristy of Bahawalpur

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MCB BANK 2011 Islamia Univeristy of Bahawalpur

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An Internship Report

INTERNSHIP REPORT ON MCB BANK LIMITED

Mr. NAZIK HUSSAIN

Department Of Management Sciences

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Background of the study

Department of Management Sciences

Limitation of the study:

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

ROLE OF SECTOR HISTORY OF BANKING IN PAKISTAN

Department of Management Sciences

Brief History of the MCB:

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Award and achievement:

Best Bank in Pakistan Award 2006

Best Domestic Bank Award 2000

Department of Management Sciences

To transfer fund anywhere easy.

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Member Member Member Member Member Member Acting President

Department of Management Sciences

Mr. Abdul Farid Bin Alias Member

Mr. M.U.A. Usmani Member

Mian Raza Mansha Member

Dr. Muhammad Yaqub Member

Mian Umer Mansha Member

Mr. M.U.A. Usmani Member

Department of Management Sciences

SENIOR EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

ASSISTANT VICE PRESIDENT

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Operation Manger (OG | )

PBA (OG |||)

Current saving dep. (OG |||) Cash (Contract)

Forex (OG |||)

Regional Operational Manager

Internal control officer

Department of Management Sciences

MCB BRANCH NETWORKS

BRANCHES OF MCB IN BAHAWALPUR

Name of Organization: Chairman: Location: Branch code: Phone: UAN: Website:

MCB Limited. Main Mohammad Mansha Eid Gah Bahawalpur. 1136

+92-062-2885126 111-000-622 (MCB) www.mcb.com.pk 30

Department of Management Sciences

Department of Management Sciences